When analysing or studying the remuneration package of your employees it is important to understand also what the market is giving. You don’t have to match it, you can be creative and give other alternatives to high salaries like benefits that are not that expensive. However, we would recommend to be aware of the latest trends in compensation, specially when it comes to your executives.
Insperity has recently launched their latest research and the outcomes are worth having a look!
RESULTS FROM THE RESEARCH ON TRENDS IN COMPENSATION
Covid has not changed the landscape in the short term
It looks like Covid had a limited inmediate impact on compensation plans for the mid-market. 57% of those who responded explained that they had taken some cost-control actions, but they have tried to maintain salaries and compensation. Just under 40% have restructured their compensation. As you can see on the image below, CEOs were the ones that reduced their salary in a higher percentage and HR executives those who most increased their salary from one year to the other.
This proves that companies have made an effort to maintain salaries despite 48% of them reporting negative growth through this year.
What are incentives about?
The research questioned companies about their type of incentives for certain roles and as an example, Sales executives had incentives by revenue in 46% of the companies asked.
In average for the different roles, just a 6% were giving incentives based on customer relations. However, around 42% of the companies gave incentives to all the main functions based on their achieved goals and performance.
Surprisingly, in this world changing to more customer centric companies, only an average of 6% of the surveyerd organisations gave as part as their compensation an incentive based on Customer satisfaction, but around 35% did gave incentives for earnings. Make your own conclussions 🙂
Companies struggle to retain talent
As we speak about the latests trends in compensation, it is extremely important to evaluate the supply /demand situation. It could surprise that companies mentioned that even on the current economy, and the high levels of unemployment, they keep struggling to retain their C-suite level executives. They are aware that they will need to increase their compensation for these professionals.
However, it looks like only 20 percent of companies have seen a reduction in employee engagement due to COVID-19 and the move to a more virtual workforce.
Most enterprises continue to use traditional talent acquisition channels, including Indeed.com and LinkedIn, though there has been a noticeable increase in Employee Referral Programs, signaling greater emphasis on employee experience and enterprise culture.
What are companies using to engage their employees?
- Over 60% use mentoring
- 58% gave access to workshops and conferences to their employees
- 37% used Upskilling programs
- 32 gave the option of networking opportunities
- and around 18% created career maps for their employees.
If this was not enough, you can read their full research here.
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